B
oston's Downtown Core is on the cusp of a significant shift in its commercial landscape. According to Avison Young's latest report, the area is poised to absorb over four million square feet of active space by March 2025, driven primarily by the FIRE sector and tech companies. These industries account for more than half of all tenants in the market.

    A closer look at the data reveals that government, education, and consumer goods occupiers are leading the charge with substantial average square footage requirements. Two major players are set to occupy over 200,000 square feet each, significantly impacting the overall demand. As these deals come to fruition, the average square footage required across these industries is expected to drop by a notable 61%.

    Looking ahead, the absence of significant out-of-state occupiers seeking to expand their footprint in Downtown Boston suggests that active space requirements will stabilize around four million square feet for the remainder of 2025 and into 2026.